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BS: A client who doesn't pay.

Bert 18 Apr 10 - 09:18 PM
Sorcha 18 Apr 10 - 09:32 PM
mousethief 18 Apr 10 - 09:32 PM
Bert 18 Apr 10 - 09:37 PM
Rapparee 18 Apr 10 - 09:54 PM
Bert 18 Apr 10 - 09:55 PM
Ebbie 18 Apr 10 - 09:56 PM
Janie 18 Apr 10 - 10:08 PM
beeliner 18 Apr 10 - 10:50 PM
GUEST 18 Apr 10 - 11:59 PM
mousethief 19 Apr 10 - 12:00 AM
Richard Bridge 19 Apr 10 - 02:18 AM
Richard Bridge 19 Apr 10 - 02:19 AM
katlaughing 19 Apr 10 - 04:19 AM
GUEST,kendall 19 Apr 10 - 05:21 AM
beeliner 19 Apr 10 - 09:04 AM
GUEST,hg 19 Apr 10 - 09:45 AM
Sorcha 19 Apr 10 - 09:50 AM
katlaughing 19 Apr 10 - 01:10 PM
gnu 19 Apr 10 - 02:20 PM
Dave the Gnome 20 Apr 10 - 06:59 AM
Richard Bridge 20 Apr 10 - 07:37 AM
Richard Bridge 20 Apr 10 - 07:42 AM
kendall 20 Apr 10 - 08:17 AM

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Subject: BS: A client who doesn't pay.
From: Bert
Date: 18 Apr 10 - 09:18 PM

How do you deal with a client who doesn't pay for work completed?

Is there a blacklist you can use?

Or, If there is a Better Business Bureau, why isn't there a Worse client bureau?


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Subject: RE: BS: A client who doesn't pay.
From: Sorcha
Date: 18 Apr 10 - 09:32 PM

Is it enough money for the police/courts to be interested in a fraud case? Or something? Theft of services?


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Subject: RE: BS: A client who doesn't pay.
From: mousethief
Date: 18 Apr 10 - 09:32 PM

Small claims court?


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Subject: RE: BS: A client who doesn't pay.
From: Bert
Date: 18 Apr 10 - 09:37 PM

It's about 16,000 dollars. Too much for small claims court. I can't afford a lawyer.

I tried the local legal services for old folks but they weren't interested.


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Subject: RE: BS: A client who doesn't pay.
From: Rapparee
Date: 18 Apr 10 - 09:54 PM

Try a mechanic's lien on the property, if your state law allows.


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Subject: RE: BS: A client who doesn't pay.
From: Bert
Date: 18 Apr 10 - 09:55 PM

This was a 'friend of the family' so there wasn't a contract, which is required for a mechanic's lien.


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Subject: RE: BS: A client who doesn't pay.
From: Ebbie
Date: 18 Apr 10 - 09:56 PM

Assuming you have the paper proofs, if you took him to court you should win- could you require him to pick up the court costs? $16,000 isn't pocket change.


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Subject: RE: BS: A client who doesn't pay.
From: Janie
Date: 18 Apr 10 - 10:08 PM

That can be a tough one, Bert. I don't know what your business is, but I have been on both sides of the equation - the customer who paid in advance for work and materials that were not delivered, and the service provider who gave services in advance for which I have not been paid.

In the first instance, the $$ amount is under $5000 and I am in the process of going to small claims court - but I am aware that I can not get blood out of a turnip and at best hope to get a mechanic's lien against property the contractor owns. I'm about to take out a home equity loan to get some one else to finish the work, and am going to be very surprised if I recover any of the cost from the first contractor I paid. Lesson learned - don't ever pay off a contractor until the work is finished.

In the second instance, after losing several thousand dollars over time for services to assorted clients who never paid me in full, I now require all clients to sign a contract that specifies I will not schedule further appointments if a client is more than two sessions in arrears.

In both instances, I chalk up the money lost to lessons learned.


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Subject: RE: BS: A client who doesn't pay.
From: beeliner
Date: 18 Apr 10 - 10:50 PM

You could hire a false nurse and stick his little baby full of needles and pins.


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Subject: RE: BS: A client who doesn't pay.
From: GUEST
Date: 18 Apr 10 - 11:59 PM

definitely a difficult position to be in. some jurisdictions, through either the court or the bar association, have a "modest means" program for people who don't qualify, for one reason or another, for legal aid-kinds of services, usually at a drastically reduced rate for the lawyer. the other thought is that maybe in your state the law provides that you can collect your attorney fees from the other guy if you win. what you ultimately decide to do may depend on whether the so-called "friend of the family" has any financial resources that you could collect if you did sue him and win, or is he a proverbial turnip?

good luck.

michael
    Please note that anonymous posting is no longer allowed at Mudcat. Use a consistent name [in the 'from' box] when you post, or your messages risk being deleted.
    Thanks.
    -Joe Offer-


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Subject: RE: BS: A client who doesn't pay.
From: mousethief
Date: 19 Apr 10 - 12:00 AM

Some friend.


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Subject: RE: BS: A client who doesn't pay.
From: Richard Bridge
Date: 19 Apr 10 - 02:18 AM

The position differs between the UK and USA. Which is it?


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Subject: RE: BS: A client who doesn't pay.
From: Richard Bridge
Date: 19 Apr 10 - 02:19 AM

PS - but in neither is it generally true that an agreement must be in writing to be a "contract".


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Subject: RE: BS: A client who doesn't pay.
From: katlaughing
Date: 19 Apr 10 - 04:19 AM

I don't know if Angies List has a reverse site for contractors with payment problems but it might be worth a phone call to them to ask: Clickety.


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Subject: RE: BS: A client who doesn't pay.
From: GUEST,kendall
Date: 19 Apr 10 - 05:21 AM

Judge Judy or Judge Joe Brown. Litigants are paid to appear on those programs and the loser pays out of his share.


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Subject: RE: BS: A client who doesn't pay.
From: beeliner
Date: 19 Apr 10 - 09:04 AM

Actually, The People's Court specializies more in business disputes.

Sounds like this would be right up its alley.


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Subject: RE: BS: A client who doesn't pay.
From: GUEST,hg
Date: 19 Apr 10 - 09:45 AM

I don't know it this will be useful information, Bert. But when a company owed me $8,000 I called them and said I would be at their office in Orlando on such and such a date and time to pick up the money. This made an impression and they sent a courier up to pay me.
I understand your predicament. I recently called the CFO of a company and said "I'll get right to the point. I need money. When can I expect it?"
harpgirl


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Subject: RE: BS: A client who doesn't pay.
From: Sorcha
Date: 19 Apr 10 - 09:50 AM

Bert, that is large enough to be felony fraud. Maybe your local County Attorney could help? They are free to citizens.


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Subject: RE: BS: A client who doesn't pay.
From: katlaughing
Date: 19 Apr 10 - 01:10 PM

When I was paid only on collections, in sales, if I had a major problem, i.e. last resort, I would type up a formal letter written in "legalese" giving them five (5) days from receipt in which to respond with payment. If they missed the deadline or didn't contact me, I would go to "my attorney" to initiate proceedings.

I used that several times in other situations, often for services which were not rendered and had already been paid for. I always got a response, usually payment. This was what a lawyer recommended for action I could take on my own. And, hg, is right, ask right out for the money. A lot of folks don't flat out ask for it.


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Subject: RE: BS: A client who doesn't pay.
From: gnu
Date: 19 Apr 10 - 02:20 PM

No contract is a tough go. I had a CLOSE cousin refuse to set his words to paper on a leased property deal. He wanted to pay half now, get the lease, and pay half later with no bill of sale and no set terms of payment. He asked, "Don't you trust me?" I said, "If I could trust you, you would sign on the dotted line."

We haven't spoken since and that's fine with me.

I coined a phrase years ago when I worked in project management... "If it ain't in writing, it didn't happen."

Anyone that can be trusted for their word will set pen to paper. Normally, I say, "Of course I trust you, but anything could happen. You could get hit by a bus. By the way, have you got life insurance?" (In my cousin's case, I didn't trust him and I wanted him to know that.)


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Subject: RE: BS: A client who doesn't pay.
From: Dave the Gnome
Date: 20 Apr 10 - 06:59 AM

Worth checking out Richard's point, above, about a contract not having to be in writing. If my sketchy memory of business law is right, in the UK at least, all you need to have a contract is offer, acceptance and consideration. From what Richard said it seems as though similar may apply in the US.

Of course it may be that Sam Goldwin (if I have the source right) was correct when he said a verbal contract ain't worth the paper it is written on...

DeG


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Subject: RE: BS: A client who doesn't pay.
From: Richard Bridge
Date: 20 Apr 10 - 07:37 AM

You are close to right, DeG, but Scottish law is not the same as English and does not require consideration.

Also in English law the intention to contract must be found to be present - it is presumed to be in place in business transactions unless the contrary is proved, but presumed to be absent in family matters unless the contrary is proved.

I think the USA may have more circumstances than English in which writing is necessary.

You are also nearly right - it was Sam Goldwyn.


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Subject: RE: BS: A client who doesn't pay.
From: Richard Bridge
Date: 20 Apr 10 - 07:42 AM

A somewhat woolly discussion of common law contract (but remember that wikipedia is not an authority)

http://en.wikipedia.org/wiki/Contract

I don't immediately see why the OP does not fling a writ.


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Subject: RE: BS: A client who doesn't pay.
From: kendall
Date: 20 Apr 10 - 08:17 AM

Get a lawyer.


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